“Brooklyn’s real estate market in the Third Quarter of 2024 shows mixed signals, but one thing is clear — it’s still drawing plenty of interest. Contracts signed are up 7% compared to last year, a strong sign that the borough’s appeal isn’t fading. Lower mortgage rates are encouraging buyers to jump back in, and with inventory up 15% annually, they have more options than before. Overall, we’re confident that Brooklyn is poised for continued growth as we close out the year.”
– Michael Sorrentino, SVP, General Sales Manager, NY
The Brooklyn market continued to show mixed indicators in the Third Quarter of 2024, yet Brooklyn showed it continues to be a highly sought-after market, as the number of contracts signed rose 7% year-over-year.
- Climbing prices, still-low inventory, and fewer large-scale new developments impacted closed sales this quarter. The 1,350 closings in the Third Quarter of 2024 is the lowest closings figure of any third quarter since 2020.
- Sales volume for 3Q2024 was $1.440B, a 6% annual decline due to the drop in closings.
- A bright spot were resale co-ops, as closings increased 9% annually.
- The 7% gain in signed contracts is the largest annual percentage gain in three years and the third quarter out of four with growth in contracts.
Listed inventory increased for the second consecutive quarter, but active listings were still 12% below the third quarter inventory average from the past decade.
- However, at 1,795 units, this is the second highest active listings figures since 3Q 2022.
- Active listings grew year-over-year in all price segments except the $350K-$500K range. The $750K-$1M price range saw the largest increase, up 64% annually.
- Fort Greene/Clinton Hill/Prospect Heights had the largest annual percentage gain in listed inventory because resale listings jumped 37% and new dev listings more than doubled.
Prices in Brooklyn are still on the rise in the Third Quarter of 2024 after the prolonged period of limited inventory has given sellers the advantage to keep prices elevated.
- Limited inventory in the lower range of prices resulted in a higher share of sales over $1M, pushing median price higher among all product types.
- Median price increased 5% YOY to $822K, the second-highest figure in three years. Median price per square foot also increased this quarter. With an annual jump of 6% to $1,047, this is a new record.
- Due to a greater share of sales between $1M and $2M, particularly in Park Slope, Brooklyn Heights, and Prospect Heights, resale co-op median price increased 13% YOY to $510K.
- Resale condo median price experienced the largest annual increase of 16% to $1.118M.